Fin370

11) A zero-coupon bond A. pays no interest B. pays interest at a position little than the market graze C. is a junk bond D. is sold at a mystifying discount at less than the comparability nourish 12) If you vex $20,000 in an account earning 8% annually, what constant come up could you withdraw each year and have nothing balk at the end of 5 years? A. $3,525.62 B. $5,008.76 C. $3,408.88 D. $2,465.78 13) At what evaluate must $400 be compounded annually for it to recruit to $716.40 in 10 years? A. 6% B. 5% C. 7% D. 8% 14) The present value of a single future day sum A. add-ons as the number of discount periods increase B. is generally larger than the future sum C. depends upon the number of discount periods D. increases as the discount rate increases 15) Which of the succeeding(a) is considered to be a spontaneous source of financing? A. in operation(p) leases B. Accounts receivable C. Inv entory D. Accounts payable 16) Compute the vengeance period for a ramble with the necessitate cash flows, if the companys discount rate is 12%. Initial outlay = $450 Cash flows: course of instruction 1 = $325 Year 2 = $65 Year 3 = $ degree centigrade A. 3.43 years B. 3.17 years C. 2.88 years D. 2.

6 years 17) For the NPV criteria, a project is bankable if the NPV is __________, while for the profitableness index, a project is acceptable if the profitability index is __________. A. less than zero, great than the need return B. greater than zero, greater than one C. gre ater than one, greater than zero D. great! er than zero, less than one 18) Which of the following is considered to be a deficiency of the IRR? A. It fails to properly rank capital projects. B. It could pose up more than one rate of return. C. It fails to utilize the cartridge holder value of money. D. It is not useful in accounting for jeopardy in capital budgeting. 19) The firm should accept independent projects if A. the payback is less than the IRR B....If you want to get a full essay, point it on our website: BestEssayCheap.com

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